Donor-Advised Funds: 5 Ways To Boost Donor Relationships

a happy family sitting on the grass

Your nonprofit may receive money from donor-advised funds already.

Do you know who recommended those gifts? Do those people support in other ways?

Many nonprofits focus on getting the next donation. Yet they overlook the relationships behind the money.

The opportunity is not just to receive more DAF gifts. It is to build stronger relationships with the people who choose to support your mission.

Here are five steps your nonprofit can take.

A donor-advised fund?

A donor-advised fund is a charitable giving account managed by a sponsoring organization. A donor contributes assets, receives a tax deduction, and later recommends grants to charities.

When your nonprofit receives a DAF grant, the sponsoring organization may be the name on the check or payment record. Depending on the grant information, your team may have limited details about the person who recommended it.

That can make donor recognition, record keeping and follow-up complex.

1. Find out how many DAF gifts you get

Before spending money on fundraising campaign, look at the information you have.

Your nonprofit may be receiving DAF grants without tracking them as a distinct source of support.

What to do:

  • Review donation records for DAF sponsors and common grant-payment sources
  • Ask your finance and development teams how these gifts are recorded
  • Identify gifts where the recommending donor is known
  • Create a report showing DAF gift totals, gift counts and identifiable donors.

Keep the record keeping consistent. Your finance and development teams should agree on how to record everything.

Record sponsoring organizations as the source of the grant and link or credit the recommending donor appropriately.

Why it matters: You cannot make informed fundraising decisions if you don’t understand how money is coming in.

The 2026 DAF Fundraising Report from K2D Strategies and Chariot includes data from 54 participating organizations and $26.1 billion in giving. Its findings offer a reason to examine this channel, but participating organizations are not necessarily representative of every nonprofit.

2. Make it easy for donors to give through DAFs

Donors should not have to guess whether your organization accepts DAF gifts.

Review your website’s donation page and giving instructions.

What to do:

  • Add a short section explaining that your nonprofit accepts donor-advised fund grants
  • Explain how donors can recommend a grant to your organization
  • Provide your legal organization name and other details donors may need
  • Give donors a clear way to contact your for questions

Make the information easy. A donor who is ready to give should not have to search through several pages or send multiple emails to learn what to do.

Use the 2026 DAF Fundraising Report to inform your process.

3. Thank the person behind the gift, when you can

A grant notice and a donor relationship are not the same thing.

When a sponsoring organization identifies the person who recommended a gift, your nonprofit may have an opportunity to thank that supporter and strengthen the relationship.

What to do:

  • Confirm what information the grant notice provides
  • Send an appropriate expression of thanks to the recommending donor
  • Explain the difference their support makes
  • Record the communication

DAF grants should not be treated like ordinary direct donations for tax-acknowledgment purposes. The sponsoring organization typically receives the donor’s original contribution and handles the applicable tax documentation.

Your team can use a consistent process for required records. This is a recurring practical concern in nonprofit discussions.

4. Show donors what their support makes possible

A donor who recommends a grant has chosen to support your mission. Your follow-up should help that person understand the work they are helping make possible.

This is where many nonprofits fall short.

What to do:

  • Share a short update about the work their support helps fund
  • Send a meaningful program milestone
  • Explain a challenge your organization is working to solve
  • Share an update from a program leader or a beneficiary story
  • Invite the donor to learn more about your work or attend an event

Choose updates that are useful and accurate. Respect requests for anonymity and communication preferences.

Put your existing content to work

You do not need to create a campaign every time you want to update supporters.

A program video, an impact report, a staff interview or a short explanation can go a long ways.

For example, a nonprofit could share a brief video showing a program in action. This is another way to explain its work without starting from a blank page.

5. Measure relationships, not just dollars

The total amount of DAF funding is important, but it does not tell the whole story.

Your nonprofit needs to understand whether its outreach is building lasting relationships.

Start with a small set of measures:

  • DAF revenue: How much funding arrived through DAF grants?
  • Gift frequency: How many grants did the organization receive?
  • Donor identification: For how many grants could you identify the recommending donor?
  • Repeat giving: How many identifiable DAF donors gave again?
  • Stewardship activity: How many donors received a meaningful follow-up?
  • Engagement: Did donors respond to invitations, request more information or take another step?

Track these measures over time. Compare results with past performance.

Do not assume that a change in revenue resulted from one email, video, or campaign. Use the numbers to identify patterns and guide your next test.

Team Trust’s perspective

Fundraising does not end when money arrives.

The communication that follows helps supporters understand your work, see progress and decide whether they want to stay involved.

Every donor communication should have a purpose.

A clear message, a relevant story and credible evidence of impact can often do more than a large volume of generic content.

For nonprofits that already have videos, interviews, event footage and program updates, find ways to make better use of those assets.

Team Trust Productions can help you explore ways to get more value from it. Request a free 15-minute video marketing review to identify three ways to put your existing video assets to better use.

Published by Ryan Wilson

CEO of Team Trust

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